Wheat Incorporated has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel $ 95 $ 15 $ 100 $ 17 Variable cost per bushel $ 90 $ 10 $ 90 $ 13 Sales (in bushels) 3,000 4,000 2,700 5,100 The total market was estimated to 70,000 bushels at the time of budget. The actual total market for the year is 39,000 bushels. What is the firm's market size variance? Multiple Choice $29,000 unfavorable. $12,250 unfavorable. $0. $17,500 unfavorable. $15,500 unfavorable.

Wheat Incorporated has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel $ 95 $ 15 $ 100 $ 17 Variable cost per bushel $ 90 $ 10 $ 90 $ 13 Sales (in bushels) 3,000 4,000 2,700 5,100 The total market was estimated to 70,000 bushels at the time of budget. The actual total market for the year is 39,000 bushels. What is the firm's market size variance? Multiple Choice $29,000 unfavorable. $12,250 unfavorable. $0. $17,500 unfavorable. $15,500 unfavorable.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 8E: Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the...

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	Budgeted	Actual Results
Price per bushel	$ 95	$ 15	$ 100	$ 17
Variable cost per bushel	$ 90	$ 10	$ 90	$ 13
Sales (in bushels)	3,000	4,000	2,700	5,100

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Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel $ 80 $ 25 $ 85 $ 17 Variable cost per bushel $ 75 $ 20 $ 75 $ 13 Sales (in bushels) 2,700 3,700 2,400 4,800 The total market was estimated to 64,000 bushels at the time of budget. The actual total market for the year is 36,000 bushels. $0. $14,000 unfavorable. $10,750 unfavorable. $16,000 unfavorable. $27,500 unfavorable. What is the firm's market size variance?
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